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Question about Differentiation and Positioning

1. What is the relationship between differentiation and positioning of products and services?

2. What is the impact of the product cycle on marketing?

Please give examples and explain.

Solution Preview

1. What is the relationship between differentiation and positioning of products and services? Please give examples and explain.

This is an interesting relationship, as product differentiation is one way that you go about positioning your products and services in the mind of your prospect. In fact, there are three parts to a differentiation strategy:

1. Positioning
2. Trust Building
3. Awareness Creation (See attachment "Differentiation" for more detail).

Product Differentiation Defined

In marketing, product differentiation is the modification of a product, usually in minor ways, to make it more attractive to the target market and to differentiate it from competitors' products. The modification can be so slight as to be merely a change in packaging or a change in advertising theme. The physical product need not change, but it could. The objective of this strategy is to develop a position that potential customers will see as unique. If your target market sees your product as different from the competition's, you will have more flexibility in developing your marketing mix. A successful product differentiation strategy will move your product from competing based primarily on price to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables). The disadvantage of this repositioning of your product to a more distinct and uncluttered position in your customers' mind, is that it usually requires large advertising and production expenditures (http://www.nowsell.com/marketing-guide/product-differentiation.html).

Also see http://www.1000ventures.com/business_guide/differentiation_strategy.html.

Positioning Defined

Positioning is about how you differentiate your product or service in the mind of your prospect.

"The easy way to get into a person's mind is to be first. If you can't be first, then you must find a way to position yourself against the ...

Solution Summary

This solution discusses the relationship between differentiation and positioning of products and services. It also discusses the impact of the product cycle on marketing. Supplemented with an article on differentiation and examples are provided.

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